Board Meeting Details

The meeting commenced at 11:30 AM IST and concluded at 1:00 PM IST on July 21, 2026.

Key Approvals

A. Financial Results

  • Approved unaudited Standalone and Consolidated Financial Results for quarter ended June 30, 2026
  • Approved Standalone and Consolidated Segment Wise Report
  • Received Limited Review Report from Kirtane & Pandit LLP, Chartered Accountants, Statutory Auditors

B. Acquisition Approval

The Board approved acquisition of 99.49% of total voting power of Kirloskar South-East Asia Company Limited (KSEA), a Thailand-based company.

Acquisition Details

Target Entity: Kirloskar South East Asia Co. Limited (KSEA)

  • Incorporated: March 31, 2016
  • Country: Thailand
  • Share Capital: 20,00,000 Thai Baht (THB)
  • Business: Trading Company
  • Turnover as of December 31, 2025: THB 30.91 Million (₹9.24 Crores)
  • Networth as of December 31, 2025: THB 22.65 Million (₹6.77 Crores)

Transaction Structure

  • Not a Related Party Transaction
  • Target company is part of Promoter Group
  • Arms-length basis transaction
  • Purpose: Promote products in South-East Asia region, strengthen presence, enhance customer engagement, provide faster sales and after-sales support

Financial Terms

  • Consideration: Cash payment
  • Total Consideration: THB 1,70,52,750 (not exceeding ₹5 Crores)
  • Shareholding Acquired: 99.49% of voting power, 48.75% of total capital

Timeline and Approvals

  • Completion timeframe: 60 business days from execution of Share Purchase Agreement
  • Necessary Regulatory/Statutory Authorities approvals required as applicable

Historical Performance of KSEA

  • CY2025 Turnover: THB 30.91 Million (₹9.24 Crores)
  • CY2024 Turnover: THB 38.12 Million (₹10.06 Crores)
  • CY2023 Turnover: THB 34.05 Million (₹8.75 Crores)

Standalone Financial Results (Quarter Ended June 30, 2026)

Income Statement

  • Revenue from operations: ₹3,003 million (Q1 FY26: ₹2,720 million)
  • Other Income: ₹79 million (Q1 FY26: ₹82 million)
  • Total Income: ₹3,082 million (Q1 FY26: ₹2,802 million)

Expenses

  • Cost of material consumed: ₹1,111 million
  • Purchase of Traded Goods: ₹125 million
  • Employee benefit expense: ₹537 million
  • Depreciation and amortization: ₹88 million
  • Other Expenses: ₹369 million
  • Total Expenses: ₹2,626 million

Profitability

  • Profit before exceptional items & tax: ₹456 million (Q1 FY26: ₹368 million)
  • Exceptional items: Statutory impact of new labour codes (none in current quarter)
  • Profit before tax: ₹456 million (Q1 FY26: ₹368 million)
  • Tax expense: ₹115 million (Current tax: ₹96 million, Deferred tax: ₹19 million)
  • Profit for the period: ₹341 million (Q1 FY26: ₹281 million)

Earnings Per Share

  • Basic EPS: ₹5.25 (Q1 FY26: ₹4.33)
  • Diluted EPS: ₹5.24 (Q1 FY26: ₹4.32)

Capital Structure

  • Paid-up Equity Share Capital: ₹130 million (Face value ₹2 each)
  • Other Equity: Not specified for current quarter

Standalone Segment-wise Performance

Compression Systems Segment

  • Segment Revenue: Entire revenue from Compression Systems (₹3,003 million)
  • Segment Profit before tax and interest: ₹625 million
  • Total Profit before tax: ₹456 million after deducting unallocable expenditure of ₹169 million

Capital Employed

  • Segment Assets: ₹7,199 million
  • Segment Liabilities: ₹3,471 million
  • Total Capital Employed in Company: ₹13,076 million

Consolidated Financial Results (Quarter Ended June 30, 2026)

Income Statement

  • Revenue from operations: ₹3,031 million (Q1 FY26: ₹2,817 million)
  • Other Income: ₹81 million (Q1 FY26: ₹84 million)
  • Total Income: ₹3,112 million (Q1 FY26: ₹2,901 million)

Expenses

  • Total Expenses: ₹2,665 million (Q1 FY26: ₹2,561 million)

Profitability

  • Profit before exceptional items & tax: ₹447 million (Q1 FY26: ₹340 million)
  • Profit before tax: ₹447 million (Q1 FY26: ₹340 million)
  • Tax expense: ₹115 million (Current tax: ₹96 million, Deferred tax: ₹19 million)
  • Profit for the period: ₹332 million (Q1 FY26: ₹253 million)
  • Profit attributable to equity holders of parent: ₹334 million (Q1 FY26: ₹266 million)

Earnings Per Share

  • Basic EPS: ₹5.15 (Q1 FY26: ₹4.09)
  • Diluted EPS: ₹5.14 (Q1 FY26: ₹4.08)

Consolidated Segment-wise Performance

Segment Revenue

  • Compression Systems: ₹2,848 million
  • Other Non-Reportable Segments: ₹183 million

Segment Results

  • Compression Systems profit before tax and interest: ₹618 million
  • Total Profit before tax: ₹447 million after deducting finance cost of ₹1 million and unallocable expenditure of ₹170 million

Notes to Financial Results

1. Results reviewed by Audit Committee and approved by Board on July 21, 2026. Statutory Auditors conducted Limited Review.

2. Financial results prepared in accordance with Indian Accounting Standards (Ind AS 34).

3. Company allotted 5,000 Equity Shares of ₹2 each under KPCL ESOS 2019 Scheme, listed on stock exchanges on July 3, 2026.

4. Exceptional items represent statutory impact of new Labour Codes announced by Government of India. Company continues to monitor finalization of State Rules.

5. Figures for quarter ended March 31, 2026 are balancing figures between audited annual figures and published year-to-date figures.

6. On May 4, 2026, Holding Company acquired additional 44.74% equity stake in subsidiary SCIPL for ₹125.50 million, making it 100% subsidiary.

7. Previous period figures regrouped/reclassified for comparability.